Breaking: FBI raids Solyndra

posted at 12:35 pm on September 8, 2011 by Ed Morrissey

Barack Obama plans on talking about using stimulus funds for job creation tonight. Think he’ll mention Solyndra, which his administration fast-tracked to $535 million in taxpayer-financed loan guarantees? Naaaah:

FBI agents armed with search warrants descended this morning on bankrupt solar company Solynrda this morning.

The investigation comes after a request by the Department of Energy’s inspector general, FBI spokesman Peter Lee told NBC Bay Area News.

Agents arrived at 7a.m. and are examining the factory. Solynrda has a skeleton crew of 100 workers on the scene, closing the factory down. A CNBC photographer on the scene says the FBI has promised a press conference. An agency spokesperson at its San Francisco headquarters says he’s unaware of any such plans.

Just to remind everyone, Obama touted Solyndra as an example of what government subsidies to green-tech firms could do for the economy and job creation. So far, it’s managed to make $535 million disappear from the economy and took 1000 jobs with it. As ABC reported yesterday, taxpayers are actually behind the company’s main investor, George Kaiser, in recouping the losses. Coincidentally, Kaiser was a big bundler for Obama in 2008.

Not only does the now-bankrupt solar energy firm Solyndra have a cozy financial relationship with the Obama administration, company representatives also made numerous visits to the White House to meet with administration officials, The Daily Caller has learned.

According to White House visitor logs, between March 12, 2009, and April 14, 2011, Solyndra officials and investors made no fewer than 20 trips to the West Wing. In the week before the administration awarded Solyndra with the first-ever alternative energy loan guarantee on March 20, four separate visits were logged.

George Kaiser, who has in the past been labeled a major Solyndra investor as well as a Obama donor, made three visits to the White House on March 12, 2009, and one on March 13. Kaiser has denied any direct involvement in the Solyndra deal and through a statement from his foundation said he “did not participate in any discussions with the U.S. government regarding the loan.”

But the countless meetings at the White House seem hardly coincidental. Kaiser, in fact, is responsible for 16 of the 20 meetings that showed up on the White House logs.

Now we have the FBI raiding Obama’s pet green-tech company at the behest of a DoE Inspector General. This of course prompts the question of when this IG gets the Gerald Walpin treatment.

With Obama about to make a case for even more government intervention and manipulation in markets, this raid couldn’t have come at a worse moment for the administration. If this raid turns up any official corruption, though, this moment will look like a Sunday afternoon on a Martha’s Vineyard golf course by comparison.

Update: Oh, by the way, this was Solyndra’s gratitude for getting over a half-billion dollars in taxpayer subsidies:

The chief financial officer of bankrupt start-up Solyndra, which had ramped up its operations after getting a U.S. government loan for solar companies, declined to say on Wednesday if potential buyers would keep its business in the United States. Under questioning at a bankruptcy court hearing by a U.S. government attorney, CFO W.G. Stover declined to identify either of the two companies that have shown an interest in Solyndra’s operations or even where they were based. Asked if the potential buyers might move Solyndra’s unique solar cylinder business overseas, Stover would only say that doing so would increase the cost to a potential buyer.

Feeling the love yet?

Update II: Getting some of this in the comments:

Isn’t Holder in charge of the FBI? He will shut down the investigation and conduct a DOJ investigaton of his own in 5.4.3…

First, the FBI has performed professionally for decades in regards to politics; they learned their lesson from Watergate and the long Hoover reign. Second, the DoJ isn’t conducting the investigation, and technically neither is the DoE. The IG is an independent actor, and the FBI would have to turn over all products from the search to the IG. However, it wouldn’t be a bad idea for Darrell Issa to insist on access to the materials as well, since Congress has oversight jurisdiction on executive-legislative agencies like the DoE.

As a lawyer who has done a fair amount of defense work, it strikes me as more than possible that someone tipped off Solyndra that they were under investigation and that the hammer was about to drop. Hence the quick meltdown and door-shutting. Just a hunch, but it seems likely, particularly given their connection to the administration and the fact that the Energy Department’s IG was doing the investigation.

The chief financial officer of bankrupt start-up Solyndra, which had ramped up its operations after getting a U.S. government loan for solar companies, declined to say on Wednesday if potential buyers would keep its business in the United States.

Lets see, a $535,000,000 loan from the US government. Sounds like the US government IS the buyer.

The news clip stated that the Bureau had search warrants. In order to get a search warrant, you must have probable cause, and be searching for specific evidence related to a criminal offense. At least that’s the case for state search warrants. A federal judge signed off on this warrant. My deduction, for what it’s worth, is that the Bureau has probable cause that a crime has been committed. Now if they will find evidence, and if it will be prosecuted if they do, is a whole different story.

Sorry to be so cynical but I’m in the camp with those who say this is a preemptive move by Holder and crew to hide the evidence.

red131 on September 8, 2011 at 1:10 PM

Much as he’d probably like to, Eric Holder can’t just order the FBI to conduct raids. So far we still have the 4th Amendment. For a raid to be conducted it requires a search warrant signed by a judge with jurisdiction. Any agency, including the IG of the DoE can go to a judge with an affidavit for a warrant laying out what they expect to find, why it’s the fruits and/or instrumentalities of a crime, and why they think it’s there. If the judge sees the merits of the affidavit he signs the warrant. A search warrant is an order to the police (in the case of a federal warrant, the FBI or other agency) to conduct the search. It’s not something the police have any discretion about, they must conduct the search and even Eric Holder can’t overrule the warrant. Frankly, I think the DoE IG got to the court before DoJ even know what was happening.

Hell… I was hoping that the MSM would be so emboldened by the Hoffa introduction, and the lack of real outrage… that we would finally get to see the Rashid Khalidi farewell party video…
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I guess that the LA Times still needs to get more courage encouraging evidence that the cost is clear before they come completely out of the closet.
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Here’s to hoping there is at least one doc exposed that shows Obama getting quid pro quo with Solyndra.
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Much as he’d probably like to, Eric Holder can’t just order the FBI to conduct raids. So far we still have the 4th Amendment. For a raid to be conducted it requires a search warrant signed by a judge with jurisdiction. Any agency, including the IG of the DoE can go to a judge with an affidavit for a warrant laying out what they expect to find, why it’s the fruits and/or instrumentalities of a crime, and why they think it’s there. If the judge sees the merits of the affidavit he signs the warrant. A search warrant is an order to the police (in the case of a federal warrant, the FBI or other agency) to conduct the search. It’s not something the police have any discretion about, they must conduct the search and even Eric Holder can’t overrule the warrant. Frankly, I think the DoE IG got to the court before DoJ even know what was happening.

Trafalgar on September 8, 2011 at 1:31 PM

No offense, but don’t be naive.

If the ATF can operate with blank, pre-signed warrants, so can the FBI.

Author’s Note: This email was received from our White House Insider over the weekend. Originally we had intended a more complete face to face interview but a scheduling conflict required that meeting be rescheduled. The identities of non-material 3rd parties have been excluded:

facebook.com/Ulsterman1

____

Sorry for having to cancel our face to face. I accepted advisory position with the -name withheld- campaign. Got a ton of work to do as time is short but nice to be “back in it.” Getting timely information from sources in WH increasingly difficult. Have not seen a situation where things were so tight as this current WH. Staff fear levels very high. Abnormally so. I caution you on your own attempts. Be very careful. Something beyond just the election cycle and loss of House going on now. Received reliable word that a “serious” scandal is being navigated by WH officials right now. At present unable to get clarification. Source is scared. I am not comfortable pushing so hard as to possibly endanger them. Attempting follow up on information with another source. Will contact you with that information when it becomes available. This sounds very serious though, and WH is cracking down on containment hard. Very hard. NYT is said to know something. Keep eyes n ears open as it appears, based on what I have so far, this will start to break open sooner than later. Developing.

Continue watching Pelosi as well. Democrats in House pushing her out regardless of election outcome. She is fighting back. Has some support within Party while other Democrats getting support from WH. -Name withheld- and others attempting to keep Party together despite eventual outcome, which is Pelosi is done as Speaker. Confirmed again. Pelosi is done. Two key House leaders agreed with WH to support move. She no longer has the numbers to protect herself. Heard from source within Pelosi office that Speaker considering retirement from House with PR campaign against Obama to follow. Developing.

Lastly, told HC turned down VP offer from WH. ”Thanks but no thanks.” MO infuriated with refusal from HC, though MO did not want Clinton as VP regardless. Feels Clintons do not respect them and cannot be trusted. HC still considering run in 2012. BC pushing hard with donors to support 2012 HC campaign and getting positive response. Believe HC to reveal more intent shortly after midterms. Developing.

Really will try to talk in person soon. Again – be careful. The current climate has become much more serious. I mean it. STAY ALERT. BE CAREFUL. WATCH YOUR BACK

Verrrry interesting scuttlebut…but, sounds a wee tad melodramatic to me, possibly someone a little needy trying to garner attention. None the less, if there is any substance to it I’ll be the first to start popping the Champers.

Just so happens, I’m sitting on a vintage La Grande Dame that’d be perfect for the occasion!

The question is why? Are they in there to cover tracks, or to gather evidence for prosecution?

With Obama at the top and gun runner as the model, whereby the top enforcement agencies were complicite in serious crimes, why should they not be doint the same thing here to cover up for the White House?

The problem with hiring people who believe that any means to an end is acceptable is that they can never -repeat -never, be trusted.

First, the FBI has performed professionally for decades in regards to politics; they learned their lesson from Watergate and the long Hoover reign.

Hahahahahahahahahahaha *wheeze* hahahahahahahahahaha….

Ed, you are so clueless when it comes to real corruption and governmental malfeasance.

This is not something where the “in fairness” attitude makes you look all statesmanlike and evenhanded. You look like a chump when you posit that there is no interconnection and/or corruption spreading down from the Traitor-in-Chief, via Holder, to the government minions of any and every agency.

1. Being a new, expensive product, large drops in retail price (tanking) means demand is solid and growing, and production is beginning to catch up in quantity and more manufacturers are entering the field.

2. Demand is up, but this company goes down the tubes. That means it’s business model was never going to succeed. That takes planning.

BobMbx on September 8, 2011 at 12:51 PM

3. A bankruptcy fire-sale due to excessive inventory, high production prices, low demand and piss-poor management!

It’s also quite possible that some in the DOE believed that this company really was a great investment for the taxpayer to make.

Was Kaiser’s loan prior to or after the DOE loan? Was Kaiser’s loan getting less of a interest rate than DOE? Does anyone know?

blink on September 8, 2011 at 12:43 PM

If Solyndra was “a great investment” they wouldn’t have needed a taxpayer loan in the first place. Private investors would have been happy to invest if Solyndra had been a solid company with good management, making a product that it could sell for a reasonable profit. But that was not the case, at least according to the credit ratings agency that reviewed them at the time they applied for the government loan. Yet somehow, despite their shaky prospects, Solyndra obtained the loan anyway — and at lower interest rates than other similarly-situated energy companies were getting. And yes, Kaiser and the other investors made their loan to the company after the DOE loan, but the DOE loan was then restructured so that it would be subordinate to the investors’ loan.

Where there’s smoke, there’s usually fire, and there is enough smoke here to choke a horse. It’ll be interesting to see how many people get burned by this fire, and how high up the flames go.

Nope. But I can prove that they perjure themselves in order to get wiretaps and warrants. It’s not much of a stretch to go beyond that.

But thanks for not saying you doubt me.

fossten on September 8, 2011 at 2:42 PM

Well now I’m afraid I do doubt you completely. You made the statement that ATF (and, relative to this thread, by extension the FBI) opeartes with blank, pre-signed warrants. When confronted you’ve completely backed off the statement and admitted you have no proof to back it up.

You know what? I have spent my entire working life as a police officer and am immensely proud of my career and the work of my fellow law enforcement officers who are overwhelmingly honest, honorable, decent men and women. It’s a hard enough job to do without coming under spurious and baseless attacks from people who don’t know what they’re talking about. I’m not naive enough to believe that all law enforcement officers are perfect, but next time you want to attack them please make sure you can back it up.

Well now I’m afraid I do doubt you completely. You made the statement that ATF (and, relative to this thread, by extension the FBI) opeartes with blank, pre-signed warrants. When confronted you’ve completely backed off the statement and admitted you have no proof to back it up.

You know what? I have spent my entire working life as a police officer and am immensely proud of my career and the work of my fellow law enforcement officers who are overwhelmingly honest, honorable, decent men and women. It’s a hard enough job to do without coming under spurious and baseless attacks from people who don’t know what they’re talking about. I’m not naive enough to believe that all law enforcement officers are perfect, but next time you want to attack them please make sure you can back it up.

Thank you and have a nice day!

Trafalgar on September 8, 2011 at 2:55 PM

ATF aren’t law enforcement officers; they’re Gestapo gun thugs who operate lawlessly and make up the rules as they go along. I didn’t attack any LEOs, champ.

And yeah, I made you as a cop a mile away. Thanks for keeping the debate from getting personal. /

Fact is, I can prove that the ATF has broken the law on numerous occasions. So your response is nothing but bluster, and thin-skinned butthurt bluster at that, considering you’re taking offense when you’re not even part of the ATF.

ATF aren’t law enforcement officers; they’re Gestapo gun thugs who operate lawlessly and make up the rules as they go along. I didn’t attack any LEOs, champ.

I’m so sorry that your fury about the ATF has blinded you to logic. ATF and FBI most certainly are law enforcement agencies. Your ranting and your implication that the FBI operates on blank, pre-signed search warrants were unsupported by any documentation or proof and constitute an attack on the law enforcement community, and I most certainly am a member of that.

Prior to the DOE loan guarantee, the firm’s auditors gave an opinion expressing concern that the firm would not survive as a going concern. For an accounting form to render that opinion things already looked very bleak, and yet our intellectual superiors in this administration (8% of the WH advisers have real world experience – the lowest in 100 years)decided full speed ahead and let’s put the taxpayers on the hook for 1/2 Billion to save the as$ of a major campaign bundler for Obama.

We’ll find out who the rogue I.G. is when he does interviews about how he was driving home and got a call from the Washington telling him to pull over and either resign or get fired, a la Gerald Walpin and $hirley $herrod.

It doesn’t take very many bad cops to negate the good ones. Some organizations stink at a great distance and some are really clean.

I think the honest cops could do a lot more to flush the crooked ones, but that would require a level of backbone which seems to be lacking in most government employees.

I personally know honest and crooked cops. This week, unfortunately, group 2 is larger. That doesn’t mean that there aren’t both kinds (and some in between.)

I think there’s probably enough evidence for indictments for major felonies up to and including treason for lots of people in this administration and the related bureaucracies. Betting on that happening is a bit sporty for me.

I think we’ll be bloody lucky to have a nation and food by the time the smoke clears.

No need for insults. My default assumption is that government largess is handed out largely on the basis of cronyism. I’ve no doubt that that could have happened in this case. But I was talking about how the two narratives would be perceived by the public vis-a-vis Obama. Most of the public doesn’t follow news like this closely. Barring some criminal conviction and/or resignation of home highly-recognizable administration official, the former option will play much better with Joe Sixpack than the latter.

That’s unfortunate, because I’d actually prefer a leader to admit a mistake (even a big one) and show some sign of introspection afterward about how it was made and why.

I guess by reading the other posts here, I’m not the only one who is a little skeptical of this raid. I’m more concerned that the FBI went to Solyndra more in an effort to help cover up than it will to expose.

If Solyndra was “a great investment” they wouldn’t have needed a taxpayer loan in the first place. Private investors would have been happy to invest if Solyndra had been a solid company with good management, making a product that it could sell for a reasonable profit.

AZCoyote on September 8, 2011 at 2:00 PM

I agree, but just because administration officials were stupid enough to think that it was a good investment doesn’t mean that there was any wrong doing. I don’t consider stupidity wrong doing.

And yes, Kaiser and the other investors made their loan to the company after the DOE loan,

Well, the last money in usually demands seniority.

the DOE loan was then restructured so that it would be subordinate to the investors’ loan.

Well, we certainly need to know more about this alleged restructuring.

I’m so sorry that your fury about the ATF has blinded you to logic. ATF and FBI most certainly are law enforcement agencies. Your ranting and your implication that the FBI operates on blank, pre-signed search warrants were unsupported by any documentation or proof and constitute an attack on the law enforcement community, and I most certainly am a member of that.

Please go foam at the mouth elsewhere.

Trafalgar on September 8, 2011 at 3:24 PM

Your proof by assertion aside, you are seeking conflict where none exists.

I suggest you instead seek anger management.

You sound just like the type of cop that bullies citizens around. Thanks for reinforcing the stereotype.

Is it cynical to believe a corrupt White House and corrupt DOJ is preemptively trying to get their corrupt hands on some evidence that will expose their corruption? I don’t think so. There is no way this came about without Holder’s direct intervention. Barry traded a government loan for campaign cash, and they are just awfully afraid that somewhere in the file drawers of Solyndra someone actually mentioned that in a memo. As someone else here said, Issa needs to get his hands on this material fast — before it hits the shredder.

The good news is that the media is going to be so busy covering up all of Barry’s scandals they won’t notice he’s losing his re-election campaign.

First, the FBI has performed professionally for decades in regards to politics; they learned their lesson from Watergate and the long Hoover reign blah blah blah

1. Ruby Ridge
2. Waco
3. Elian Gonzalez
4. ????

BobMbx on September 8, 2011 at 2:19 PM

Ed: IIRC the on scene FBI supervisor at Ruby Ridge was given a letter of reprimand by Freeh and then made his number two man. No problem there. They acted REAL professional when they shitcanned the Minneapolis bureau’s suspicion about Moussasoui.

The administration will be seeking to put distance between itself and this “rogue” operation. If they can find the right person to take a fall for Solyndra then they can go back to “normal green-energy operations”. As long as this shining example of eco-political corruption is on display, their energy scam is on hold. Before the election gets going, they will want this cleaned up.

Obama and his cronies at the FBI are engaged in a crime!
The crime: destroying evidence in a major ongoing investigation.
This is a national outrage!
We need honest people in the FBI to blow the whistle!
We need the House of Representatives to call for an investigation!